The Government Announces New Measures to Encourage Family Friendly Tenancies | 03.10.2013
Families could soon benefit from longer fixed-term tenancies in the private rented sector, in a move which could raise standards across the industry.
This week’s announcement is also good news for landlords who, in turn, could benefit from more stability and reliable long term tenants. In response to a continued growth in the rental market, the Government has set out plans for tenants to be able to request longer tenancies.
The Government claims that it wants to “match support for home ownership with steps to improve the rental market, without strangling the sector with unnecessary rules and red tape.” The measures will set out a model tenancy agreement - that is drawn up with help from landlords and letting agents – that will clearly set out the rights and responsibilities of tenants and landlords and provide a benchmark for the industry. The agreement will also;-
- ensure families can benefit from longer tenancies, without changing the existing legal framework for the rental market
- give families greater certainty and security
- ensure tenants can access better information so they know the types of tenancies they can request
For landlords worried about how the changes will affect their mortgage, the Government claims that it will encourage lenders to follow the recent change in policy by the Nationwide so that buy-to-let borrowers can offer longer initial fixed periods in the tenancy agreements.
Cheryl Reuben, business development manager at Town & Country Property, said: “The Government’s new proposals look to be both advantageous to landlords and families who rent within the private sector. Landlords will benefit from the reassurance from the outset of the tenancy that they will have an occupied property on a long term basis. This will undoubtedly encourage them to invest in their properties in order to be more attractive to the ‘family’ market so that they retain the tenancy for as long as possible. Meanwhile tenants will have the added security of knowing that they will not
suddenly be required to uproot their family from their home, especially if they have children settled in a local school. It is essentially a win win situation for both parties.”
More details of the Government’s planned changes to the rental sector can be found here … https://www.gov.uk/government/news/better-tenancies-for-families-in-rental-homes
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